Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
I noticed an interesting trend, recent crazy ARV prices for Little Village 2 units especially on east side. These prices are 100% higher then 1-2 years ago when you could get a gut rehab 2 unit there for under $300,000. Few recent sales.....
2621 W 24th - 2 units - Contingent from $500k
2610 W 24th - 2 units - Sold $500k 3/17/21
I personally think these prices are over valued and would not recommend them for investors to long term hold, I forecast the rents to be under/around $3000 for the above buildings (both sold vacant). I like Brighton Park nearby though which still offers great cashflow and has a higher credit/income tenant then Little Village. Brighton park is right next to McKinley Park and Bridgeport which have blown up with luxury homes/condos now being built. I think part of the reason these east little village properties are selling so high is because they are "close to pilsen" and potentially Brighton Park will follow this same trend next. You can still find under $500k legal 4 units in Brighton Park and $200k 2 units.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Henry Lazerow we just sold a legal three with an attic AirBnB space for 376k in Little Village on the East side of the neighborhood. The difference in rents for renovated product versus the average in the neighborhood is pretty incredible. I am cautiously optimistic about Little Village as their is a lot of development going on, but it is definitely still block by block and you need to know the neighborhood for sure.
Chicago, IL · Member since 2016 · 238 posts · 68 votes
5y
Just another side of the incoming inflation. I don't expect anything to change until rates eventually go up. The neighborhood is also seeing a big influx of people from Pilsen moving west too, so it seems like a few causes together.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Henry Lazerow we just sold a legal three with an attic AirBnB space for 376k in Little Village on the East side of the neighborhood. The difference in rents for renovated product versus the average in the neighborhood is pretty incredible. I am cautiously optimistic about Little Village as their is a lot of development going on, but it is definitely still block by block and you need to know the neighborhood for sure.
I noticed an interesting trend, recent crazy ARV prices for Little Village 2 units especially on east side. These prices are 100% higher then 1-2 years ago when you could get a gut rehab 2 unit there for under $300,000. Few recent sales.....
2621 W 24th - 2 units - Contingent from $500k
2610 W 24th - 2 units - Sold $500k 3/17/21
I personally think these prices are over valued and would not recommend them for investors to long term hold, I forecast the rents to be under/around $3000 for the above buildings (both sold vacant). I like Brighton Park nearby though which still offers great cashflow and has a higher credit/income tenant then Little Village. Brighton park is right next to McKinley Park and Bridgeport which have blown up with luxury homes/condos now being built. I think part of the reason these east little village properties are selling so high is because they are "close to pilsen" and potentially Brighton Park will follow this same trend next. You can still find under $500k legal 4 units in Brighton Park and $200k 2 units.
There have definitely been some bizarre sales and rentals in LV lately. Overall prices are going up in the neighborhood, but not anywhere close to what's going on East of California, and especially North of Cermak. Just watching who is walking around, the demographic in that later area has definitely changed in the past year.
Although MUCH higher rents are being obtained E of Cali, I doubt those will be sustained long term (but I hope I'm wrong!). Those units are being rented to mostly out-of-area folks who are wooed by the beautiful condo-level finishes and space. But...as soon as the first few shootings happen in the middle of a nice summer day, they want out. The area south of Cermak remains a gang hot bed and doesn't show much as far as that improving anytime soon - shootings happen day or night, cold or warm weather, and in plain sight of bystanders. And its been like that for the 13+ years I've lived in that immediate area of LV. Many folks who've never experienced an environment like that quickly want to pack up their possessions and leave, or will wait out their leases and move out as soon as they can, even though they aren't directly involved. IE great, you rented your unit for $1650, but is that person going to stay 6 months, let alone the full term of their lease? And how long will it sit vacant (answer is over a month) before you get your next tenant in who will do the same.
My feel on these $300k+ 2-unit buildings is that its a long-term play hoping for major change in the neighborhood over the next 10+ years. But again, my position is that's a highly speculative move, based on current market conditions.